The problem with that is eventually all of those income sources (IPO,
credit line, investors, etc.) dry up... and then you are left with
revenue to try and pay all the others (hardware, long term and monthly
debt, etc.). It can work, but I just don't see it in this industry. With
$30/month accounts (with little or no add-ons that the cell companies
used to have like vmail, long-distance, over-minute usage fees, etc.)
there just isn't that much profit.
The other difference is most telco's (and even cell companies) operate
on a 30 year ROI. That just doesn't work in the internet world. I guess
only time will tell.
Travis
Microserv
Peter R. wrote:
I've spent much of this year analyzing the financials of Vonage and
other companies. I just finished looking at VZ.
(http://radinfo.blogspot.com/2007/03/vz-spending-billions.html)
The numbers make no sense. But then under GAAP accounting its all
about putting your numbers in the proper silo and never changing.
Where does the money come from?
Some of it is debt.
Some of it is hardware financing.
Some of it is IPO money.
Some of it is a credit line.
Some from investors.
A little from revenue.
George Rogato wrote:
I think it's the money raised from the sale of stock.
Because if the 180 doesn't leave any profit, what about all the radio
and tv advertizing they do?
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